Income Taxes

6 Months Ended

Jun. 30, 2025

Income Tax Disclosure [Abstract]

Income Taxes

6. INCOME TAXES

On July 4, 2025, the One Big Beautiful Bill Act (“OBBB”) was signed into law. The OBBB contains several changes to corporate taxation including modifications to capitalization of research and development expenses, limitations on deductions for interest expense, and accelerated fixed asset depreciation. The Company is still in the process of evaluating the OBBB and an estimate of its impact on the Company and the Company’s financial statements cannot be made at this time.

The Company recognized an income tax benefit of $7.2 million and an income tax provision of $4.3 million for the three months ended June 30, 2025 and 2024, respectively. The income tax benefit for the three months ended June 30, 2025 was primarily due to the Company's year-to-date pre-tax book loss. The income tax provision for the three months ended June 30, 2024 was primarily due to the tax provision related to pre-tax book income.

The Company recognized an income tax benefit of $20.5 million and an income tax provision of $0.1 million for the six months ended June 30, 2025 and 2024, respectively. The income tax benefit for the six months ended June 30, 2025 was primarily due to the Company's pre-tax book loss. The income tax provision for the six months ended June 30, 2024 was primarily due to the Company's pre-tax book income, partially offset by the tax benefit related to stock-based compensation expense.

The Company made income tax payments of $26.3 million and $30.0 million during the three months ended June 30, 2025 and 2024, respectively. Refunds received from various states were negligible during the three months ended June 30, 2025 and 2024.

The Company made income tax payments of $27.3 million and $30.6 million during the six months ended June 30, 2025 and 2024, respectively. The Company received refunds of $0.7 million from various states during the six months ended June 30, 2025. Refunds received from various states were negligible during the six months ended June 30, 2024.

As of June 30, 2025, unrecognized tax benefits were materially consistent with the amount as of December 31, 2024. The Company believes its liability for unrecognized tax benefits, excluding interest and penalties, will not materially change over the following twelve months.